The Growth Plan

Debate between Kwasi Kwarteng and Sammy Wilson

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

Absolutely. I will be updating the House on measures to try to make sure that the financial services become, as they have been in the past, a world-leading industry.

[Sammy Wilson (East Antrim) (DUP)]

I think many people will be astounded at the reaction to the Chancellor’s proposal to increase economic growth in the United Kingdom, which will increase standards of living, increase employment, help to raise revenue for public services and reduce the national debt. I only hope that the Brexit freedoms that he talks about, once we are free of the Northern Ireland protocol, will lead to investment zones and regulatory reform in Northern Ireland.

Will the Chancellor consider two things to help working families? First, will he consider increasing tax-free childcare allowances, which would be an immense help for them? Secondly, since two thirds of people in Northern Ireland rely on home heating oil, will he accept that a £100 increase in assistance is not acceptable when there has been a 300% increase in the price of heating oil?

[Kwasi Kwarteng]

We are absolutely looking at the childcare issue, and I am sure one of my Cabinet colleagues will update the House on that; we are talking about the heating oil intervention; and we are very willing and eager to engage with Northern Ireland colleagues and friends on working out how we can roll out investment zones in Northern Ireland.

Energy Security Strategy

Debate between Kwasi Kwarteng and Sammy Wilson

Tuesday 19th April 2022 Commons Chamber

[Kwasi Kwarteng]

All these issues are being looked at. The six-month periods for the price cap are being reviewed, and, as I have said, financial resilience for new entrants will be considered. A subject that has not been mentioned so far is the future system operator and the electricity system operator. That is a remarkable innovation, and I am proud that it is included in the document. I should be happy to talk to my hon. Friend about these matters.

[Sammy Wilson (East Antrim) (DUP)]

The Secretary of State has said that this is a long-term strategy, and obviously we need that, but there is a short-term problem, namely that people cannot afford to pay their bills at present. That is partly due to the green levies, which amount to about £400 a year in additional costs to individuals. What plans has the Secretary of State to deal with that? Given his plans for a number of new offshore wind turbines, may I ask how many he believes are needed, and at what cost? What is the cost of connection to the grid, and how will that affect the capital costs on people’s energy bills?

[Kwasi Kwarteng]

As the right hon. Gentleman will know, in the time during which I—indeed, I suspect, both of us—have been in the House, renewables have really taken off. They are the one bit of the energy story here in the UK that has been genuinely transformative and a world leader, and I am very proud of that. As for the immediate support for hard-pressed consumers facing a global price hike, my right hon. Friend the Chancellor committed £9 million to help people to pay their bills.

Russian Oil Import Ban

Debate between Kwasi Kwarteng and Sammy Wilson

Wednesday 9th March 2022 Commons Chamber

[Kwasi Kwarteng]

No right hon. or hon. Member has done more for motorists over the last 12 years than my right hon. Friend. I completely hear his imploring the Treasury to help consumers. My right hon. Friend the Chancellor provided a wide range of measures that offer some support, but we are always happy to talk to him to see how we can improve the offer.

[Sammy Wilson (East Antrim) (DUP)]

It is a great pity that it has taken a war in Europe to show how mad our energy policy is. Nevertheless, I welcome the Secretary of State saying that turning off domestic production of North sea oil and gas would be completely insane right now. Does he agree that it would be equally insane to turn our back on the shale gas that is available in the north of England, which would help to make us less dependent on foreign resources, create jobs, give us security of supply and give the Treasury revenue from gas? Does he agree that the Prime Minister’s decision not to concrete over the wells that are already there is the first step to the exploitation of that gas?

[Kwasi Kwarteng]

In conversation with the Prime Minister, we were clear that it did not necessarily make any sense to concrete over the wells. We are still in conversation about that. As I said, our position on the moratorium has always been the same: if fracking can be done in a safe and sustainable way, the Government are open to the idea. We have always said that; the position has not changed. With respect to the North sea, I fully agree with everything that the right hon. Gentleman said.

Corporate Transparency and Economic Crime

Debate between Kwasi Kwarteng and Sammy Wilson

Monday 28th February 2022 Commons Chamber

[Kwasi Kwarteng]

My right hon. Friend is absolutely right. He says it may take a few months to get the register up and running, and I am trying to make the process as quick and effective as possible. He also mentions that we must not have a disproportionate effect, that we must not overburden small business people and people who want to incorporate and set up businesses, and we will not be doing that. I would be happy to work with him, as he did brilliant work in government, to make sure the Government get this right.

[Sammy Wilson (East Antrim) (DUP)]

It is a pity that it has taken a war in Ukraine to bring forward these measures. Irrespective of that, I have some concerns. First, the statement made no mention of what resources will be available to check whatever information is registered. Secondly, there is no indication of what will be done against those who facilitate money laundering in the first place—the whole professional industry engaged in that. Lastly, change is needed in the legal system to stop long, costly and complicated legal battles in court.

What discussions has the Secretary of State had on this with the Northern Ireland Executive? We do not have Russian oligarchs, but we have plenty of home-grown people who launder money from criminal activities using their past terrorist connections. That needs to be dealt with, too.

[Kwasi Kwarteng]

As I noted, observed and made very clear, we have a spending review settlement of £63 million for Companies House, which is a considerable uplift on previous budgets. There is a commitment to make sure we have the resources to police this new regime.

We speak to colleagues in the devolved Administrations all the time, and I am even happy to discuss these issues with the right hon. Gentleman, should he be so minded.

Bulb Energy: Administration

Debate between Kwasi Kwarteng and Sammy Wilson

Wednesday 24th November 2021 Commons Chamber

[Kwasi Kwarteng]

Being a close student of the energy White Paper, as I am sure he is, my hon. Friend will know that we have had a commitment to invest in one more large-scale nuclear project before the end of the Parliament. He will also know that we have committed to small modular reactors. I was very pleased to go to Sheffield to make that announcement only last week. Nuclear is clearly a big part of our energy mix and will help us in the future.

[Sammy Wilson (East Antrim) (DUP)]

The Government’s headlong rush to net zero is already showing through in people’s fuel bills and levels of fuel poverty in the United Kingdom. Despite what the Secretary of State has said about licences to help through the transition period, we will still be reliant for 50% of our gas on outside sources, which does not give us energy security. At the same time, we have enough gas under the ground in the UK to keep us totally supplied for the whole country for 150 years, which could help the levelling-up agenda in the north-west of England, and help my constituents who currently find themselves at the end of a very expensive pipeline and are very vulnerable. Why are the Government not prepared to exploit the resources that we have to deal with fuel poverty and fuel security and to help the levelling-up agenda in poorer parts of England?

[Kwasi Kwarteng]

I do not apologise for the net zero agenda. We saw big strides at COP26. We could have gone further. That is an area in which we are showing leadership and that is something we should be proud of. On, as the right hon. Gentleman put it, exploiting gas resources, we looked at fracking. There were issues with regard to the Richter scale, earthquakes and that sort of thing. People objected to that and we imposed a moratorium. But I am very happy to discuss this issue with him if he wishes.

Oral Answers to Questions

Debate between Kwasi Kwarteng and Sammy Wilson

Tuesday 16th November 2021 Commons Chamber

[Kwasi Kwarteng]

I would be very happy to meet my hon. Friend and the Midlands Engine Partnership to discuss how we can decarbonise our economy. I know he does a fabulous jobs as co-chair of the APPG. I have always enjoyed my engagement not only with him but with the Midlands Engine Partnership.

[Sammy Wilson (East Antrim) (DUP)]

Does the Secretary of State at least accept that immediate environmental damage is being caused by the pursuit of renewable energy, with 13 million trees cut down in Scotland for wind farms, forests devastated across the world to produce ethanol for petrol, and Drax power station importing millions of tonnes of wood from America each year? Does he not accept that in an attempt to control the world’s climate, we are actually damaging the environment right now?

[Kwasi Kwarteng]

The right hon. Gentleman and I have exchanged differing views on this subject over many years now. What I do accept is that our drive—our push—for renewables is leading the world in pursuing a decarbonised economy.

Subsidy Control Bill

Debate between Kwasi Kwarteng and Sammy Wilson

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[Kwasi Kwarteng]

Local authorities have to declare spending at much lower levels than the figure that my hon. Friend has just put forward. Clearly, transparency is at the centre of what we are trying to achieve. Instead of a year, the whole process will take only a few weeks. It will be a much quicker process and it will allow public authorities to act with far greater agility than before. However, I do not believe that the transparency will be in any way compromised. This is an area that will give more flexibility while not diminishing accountability. In fact, it will enhance accountability because, under the EU state aid regime, there was no way we could change the rules in any way.

At the same time, this is a regime that will provide certainty and confidence to businesses within the UK, and also to those among the foreign investment community who are keen to invest in the UK, by protecting against subsidies that risk distorting competition or causing harmful economic impacts. And of course, the regime will operate alongside our usual, traditional stringent spending controls to ensure the best use of public money.

[Sammy Wilson (East Antrim) (DUP)]

Does the Minister not see the inherent flaw in his argument about levelling up and treating the whole of the United Kingdom as one, in so far as Northern Ireland will be subject to a dual subsidy regime: the state aid rules imposed by article 10 of the protocol and the Bill that is going through today? So any subsidy that a public authority Northern Ireland wishes to give will be subject to the very one-year scrutiny that he is talking about, whereas a public authority in the rest of the United Kingdom will have it cleared within 20 days, thereby placing any attempt to attract business to Northern Ireland at a disadvantage.

[Kwasi Kwarteng]

That is precisely why I am addressing this precise point in my speech, if the right hon. Gentleman will allow me. We are setting out the detail of a UK regime that is far from simply adhering to the EU, and it will clearly no longer be necessary for Northern Ireland to be subject to the EU state aid regime. That is precisely why we have proposed the change to the Northern Ireland protocol to bring all subsidies within scope of the domestic regime.

The Bill, as hon. and right hon. Members should know, has been informed by a public consultation, which showed broad support for the Government’s proposals. The Government also held a second consultation with the devolved Administrations as we reached the end of the policy work and the considerable time that we spent trying to get the Bill shipshape. That second consultation showed clearly that the UK Government and the devolved Administrations agreed on the fundamentals of the regime, including the seven principles, the objectives for the regime, and the need to respect the devolution settlements and support levelling up.

Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Debate between Kwasi Kwarteng and Sammy Wilson

Monday 1st March 2021 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

It is now clear that the policy of phasing out the production of petrol and diesel cars will have an impact on employment in some areas of the United Kingdom where we have higher than average unemployment. What impact assessment have the Government done on the effect of this policy on revenue from fuel duty? What impact assessment have they done on the environmental impact of the mining of earth metals, one of the dirtiest industries in the world? What impact assessment have they done on the impact on poor families who will now face higher capital costs when it comes to purchasing cars? Would it not be a far more Conservative policy to allow manufacturers and consumers to make the choice as to which cars they make and which cars they drive?

[Kwasi Kwarteng]

Clearly, the right hon. Gentleman and I may have a different view on the threat of climate change, including, in particular, the drive to net zero. I suggest to him that the Prime Minister’s 10-point plan has been well received. There has been huge support across the United Kingdom to see cleaner technology and electric vehicles and many people are very supportive of the Government’s measures in this regard.

Oral Answers to Questions

Debate between Kwasi Kwarteng and Sammy Wilson

Tuesday 3rd March 2020 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

At the same time as the Government have re-announced subsidies for onshore wind, Scottish Forestry has revealed that 13.9 million trees have been cut down for wind farms on its land. Does the Minister share my concern at those acts of economic vandalism? Does he believe that it is in the economic and environmental interests of this country to tear down trees, cut up peatland and erect steel structures on pristine landscapes in the vain hope that we can change the climate?

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I am always very interested in the right hon. Gentleman’s contributions on this subject. We should look at the details of actual deforestation, but he must not allow himself to get distracted from the big picture. The deployment of offshore wind has been a huge success for the UK. As the Secretary of State said, the price per megawatt hour has come down by two thirds and renewable energy is absolutely at the centre of our strategy to reach net zero carbon.

Oral Answers to Questions

Debate between Kwasi Kwarteng and Sammy Wilson

Thursday 4th April 2019 Commons Chamber

[Kwasi Kwarteng]

My hon. Friend is quite right: holding a second referendum would create enormous uncertainty that would undermine the strong economic achievement of the Government and of our businesses. It would essentially take us back to square one and result in more delay at a time when the public simply want politicians to deliver what they promised.

[Sammy Wilson (East Antrim) (DUP)]

After the talks with the Labour party leader yesterday, the Chancellor said this morning that a second referendum is more likely. Are we seeing the start of yet another U-turn from a Government who have abandoned all their promises on going forward with no deal, having no border down the Irish sea and ensuring that we leave the EU on 29 March?

[Kwasi Kwarteng]

In respect of the second referendum, as I said to my hon. Friend the Member for Corby (Tom Pursglove), it is Government policy to honour the 2016 referendum. That is what we have been tasked to do, and that is what we are 100% focused on. The second referendum is a red herring, frankly. It is not something that we countenance. We want to deliver on the 2016 referendum.

Trade, Exports, Innovation and Productivity

Debate between Kwasi Kwarteng and Sammy Wilson

Wednesday 13th January 2016 Commons Chamber

[Kwasi Kwarteng]

I take that intervention in the spirit in which it was made. My hon. Friend makes a very good point.

It is not right or fair to argue that our friends in the eurozone have succeeded where we have failed. Their success, in terms of the current account figures, is actually a measure of failure. It is a measure of the fact that their domestic demand was completely crushed by very tight fiscal consolidation measures. Notwithstanding the political rhetoric, we have avoided much of the very severe fiscal consolidation that those countries have experienced.

[Sammy Wilson]

Does the hon. Gentleman accept that we have suffered partly because of that? Exports to Europe have fallen, while our growing economy has sucked in imports from the countries where domestic demand has been suppressed.

[Kwasi Kwarteng]

That is an excellent point. It is clear that if domestic demand in those countries has been sharply contracting, their capacity and ability to buy our exports has diminished commensurably, and that has unquestionably made life much more difficult for our exporters. I believe, however, that when it comes to British exports and our trade missions, the most fundamental thing that any exporter or manufacturing concern will seek is a degree of economic stability in the home market, along with a degree of visibility and a degree of responsibility on the part of the Government to ensure that there is some economic stability, and that our problems are being dealt with in respect of such matters as fiscal consolidation and deficits.

Those who speak to businesses, as I do in my constituency and as I am sure many other Members do in theirs, will hear from them that, broadly, the Government’s policy, although not perfect, has been conducive to a degree of economic stability. Policies such as those on apprenticeships and the significant reduction in corporation tax have made life easier, or more attractive, for exporters and business-people in general. When we tackle a debate of this nature, it is very difficult to divorce the issues of trade, the current account and innovation from the general economic strategy the Government are pursuing. It is clear that although many challenges lie ahead a large section of people feel comfortable that the Government are taking the right approach to the economic management of this country. That is an important point to make at the beginning.

As I have noticed in this debate, we talk about abstract concepts such as exports and trade deficits as though we were living in the 1960s or earlier. This language evolved in a period when Britain was the industrial motor of the world—the factory of the world—and it was very much a Victorian model of the economy, which arguably persisted until 1939. But in the economy of 2016 it is very difficult to disaggregate exports in goods from exports in services and from hybrid exported products that are manufactured but have a degree of service element to them. The hon. Member for Hartlepool (Mr Wright) referred to the trade deficits of the 1960s which he had learned from his reading brought Governments down. Every day in the 1960s people looked at the trade figures; that was the big number. The model of the economy today, however, is completely different from that of 1967 or 1970, yet many of our debates are couched in the language, and reflect the concerns, of a bygone era. It has been almost 50 years since the 1967 devaluation and it is crazy for us to conduct this debate as if nothing has happened in the last 50 years.

We should consider the British economy—how wealth is created and distributed, the role of exports, the role of manufacturing. It is true that manufacturing has diminished, for instance, but I would argue that that is in large part a function of the evolving nature of the British economy. The economic history of Britain shows we have gone through lots of different phases. The phase of industry in which we manufactured huge amounts has gone, sadly.

The hon. Member for Sefton Central (Bill Esterson) mentioned the steel industry and said how terrible it was that the Government had not subsidised and protected it. Wolfgang Eder is head of Worldsteel. Current capacity in Europe is about 200 million tonnes, and he says that for it to be sustainable it should be halved. There is overcapacity among European steelmakers. The idea that we can somehow subsidise things endlessly on an unproductive basis is simply wrong.